25 Ch

Front 1

risk

Back 1

is the chance of financial loss form perils to people or property

Front 2

insurance

Back 2

is a method for spreading individual risk among a large group of people to make losses more affordadle for all

Front 3

insurer

Back 3

is abusiness that agrees to pay the cost of potential future loses in exchange for regular fee payments

Front 4

policy

Back 4

contract

Front 5

premium

Back 5

usually paid

Front 6

policyholder

Back 6

the owner of the policy

Front 7

indemnification

Back 7

means putting the policyholder back in the same financial condition he or she was in before the los occurred

Front 8

Prbability

Back 8

is the mathematics of chance and the root of idemnification

Front 9

Personal risks

Back 9

are the chances of loss involving your income and standard of living

Front 10

property risks

Back 10

fire theft wind rainto protect from such losses

Front 11

Liability risks

Back 11

are the chances of loss that may occur when your errors or inappropriate actions result in bodily injury to someone else or damage to someone else's property

Front 12

pure risk

Back 12

a chance of loss with no chance gain.

Front 13

speculative risk

Back 13

is a risk that may result in either gain or loss.

Front 14

insurable interest

Back 14

any financial interest in life or property such that, if the life or property were lost or harmed, the insured would suffer financially.

Front 15

Risk management

Back 15

an organized strategy for controlling financial loss from pure risks.

Front 16

risk avoidance

Back 16

you would eliminate the chance for loss by not doing the activity that would result in the loss.

Front 17

risk reduction

Back 17

you would take measures to lessen the freqyuency or severity of losses that may occur.

Front 18

risk assumption

Back 18

you would establish a monetary fund to cover the cost of a loss.